The Philippines has been chosen by the Nestle Group as the site for its shared service center for financial and employee services.

Nestle Philippines announced this yesterday, as it prepares to set up the shared service center which will be known as the Nestle Business Services AOA (NBS). The NBS will serve the financial and employee service requirements of Nestle companies in Zone AOA, which includes the Philippines, Malaysia/Singapore, Indonesia, Indochina, Australia and New Zealand. Financial services include account payables and receivables and accounting operations. Employee Services cover payroll, HR administration, time management and benefits administration.

Nestle Philippines Chairman and CEO Nandu Nandkishore said the shared service center, which will be a separate entity from Nestle Philippines, Inc., is another significant demonstration of the Nestle Group's continuing confidence and commitment to support the long-term economic growth of the country.

"This is recognition of our world-class capability in the area of financial and employee services, and will allow us to once more showcase Filipino competence," Nandkishore said, adding that the Nestle Group considered a number of countries as possible site for the NBS, but finally selected the Philippines because of talent availability and cost efficiency.

He said the NBS, which is expected to create employment opportunities, is designed to deliver best-in-class office support at competitive service levels and costs to Nestle companies in the region. The Nestle Group has successfully implemented the shared service model in Europe and the Americas, resulting in maximized cost effectiveness, efficiency, and improved quality in financial and employee service transactions.

Nestle said moving the financial and employee services transactions to the NBS will be done progressively, starting with Nestle Philippines which is expected to complete the transition of its financial services by end of 2007, and its employee services by the end of the first quarter of 2008. Employees who will be affected by this development will be provided with a separation package which is over and above what the law requires, and will also be considered in the new NBS organization. Safety net programs such as change and care workshops, livelihood seminars and outplacement services will likewise be made

available to them.

A complete transition by the other Nestle companies in the Zone is expected by end of 2008.

"We are happy that through the NBS, we are able to help spur economic growth in the country," Nandkishore said. Nestle Philippines recently announced its local investments of more than P1.3 billion this year, to further enhance its capabilities to serve domestic and export demand. The Company has been designated by the Nestle Group as the ASEAN Supply Center for breakfast cereals, filled milk powder, and infant nutrition. Nestlé's investments in the country over five years, from 2003 to 2007, will total close to P10 billion. NPI sales in 2006 totaled P67.2 billion, with exports amounting to P6.4 billion or nearly 10 percent of sales.

Source: The Manila Bulletin